The average prime rent in a European Central Business District (CBD) grew 2.5% year-on-year to the end of Q1 2017, with non-CBD rents also rising by 3.5%, as a lack of high quality space pushes tenants towards alternative locations outside city centres, according to Savills latest European Offices Market Report.

Total supply of modern office space in Poznań is expected to exceed 500,000 sq m in 2018. According to the report by real estate advisor Savills office market in Poznań is the fifth largest regional office market in Poland, however the growth of the market is accelerating as space under construction is over two times more than at the end of Q1 2016. The vacancy rate in Q1 2017 decreased year-on-year. Prime headline rents are expected to remain stable over the next 18 months.

The software services company Mobica will open its branch in Poznań, creating over 100 new jobs. Recruitment process has already begun. The tenant will move into Temida office building in August. Mobica was advised by JLL and the owner of the building was represented by Savills in the transaction totaling 1 030 sq m of office space.

According to international real estate advisor Savills, the average yield in Europe’s prime CBD office market dropped for the first time on record to just below 4% in the first quarter of this year. Prime office yields continued to harden on a quarterly basis in Paris La Défense (-50bps), Amsterdam (-40bps), Vienna (-25bsp), London City (-25bps) and in the ‘big six’* German cities (-10bps). However Savills claims that prime office yields remained stable in most other markets and overall their level is 90bps below the long term average.

Savills has listed trends in the office market in Warsaw. The most important observation is the creation of a new group of tenants – co-working space operators, which generate an increasing share of demand. Also, as a result of Brexit, up to 4,000 new jobs can be created in Warsaw and the falling unemployment rate will increase the importance of office space in attracting best talents.